LONDON, Nov 28 (Reuters) - Pandora, the world's biggest jewellery brand by volume, expects fierce competition this Black Friday as retailers fight to lure shoppers with discounts at a time of weak consumer confidence, its chief commercial officer said on Friday.
Black Friday typically draws crowds, but inflation and unemployment could dampen spending this year. The event is a key earner for Pandora, which is also grappling with U.S. import tariffs and a surge in silver prices.
"The market in general is becoming more promotional, more aggressive," Pandora's chief commercial officer Massimo Basei told Reuters, adding that competition was more intense than a year ago. "We all read the news about inflation... and since we are a brand that speaks to the masses, of course we feel it."
Pandora has seen good store traffic, Basei said, but shop assistants are having to work harder to convert browsers to buyers. "What we're seeing is that certainly consumers are more cautious," he said.
The $9.4 billion Danish brand makes silver bracelets and charms at its own factories in Thailand, and sells around the world, with the U.S. its biggest market. About 40% of Pandora's annual revenue is made in the fourth quarter, when it sells seven pieces every second during peak holiday shopping. The company has raised prices in the U.S. to mitigate the impact of tariffs and the cost of silver.
"The market in general is becoming more promotional, more aggressive," Pandora's chief commercial officer Massimo Basei told Reuters, adding that competition was more intense than a year ago. "We all read the news about inflation... and since we are a brand that speaks to the masses, of course we feel it."
Pandora has seen good store traffic, Basei said, but shop assistants are having to work harder to convert browsers to buyers. "What we're seeing is that certainly consumers are more cautious," he said.
The $9.4 billion Danish brand makes silver bracelets and charms at its own factories in Thailand, and sells around the world, with the U.S. its biggest market. About 40% of Pandora's annual revenue is made in the fourth quarter, when it sells seven pieces every second during peak holiday shopping. The company has raised prices in the U.S. to mitigate the impact of tariffs and the cost of silver.
Reporting by Helen Reid;Editing by Elaine Hardcastle
Source: Reuters